WPM7202

– EMPLOYEE VALUE PROPOSITION (*NOTE 1)

Create a great employee value proposition

An employee value proposition (EVP) is the unique set of benefits that an

employee receives in return for the skills, capabilities, and experience
they bring to a company.

An EVP is about defining the essence of your company – how it is unique

and what it stands for. It encompasses the central reasons that people are
proud and motivated to work there, such as the inspiring vision or
distinctive culture. It is crucial to make sure your EVP is unique, relevant,
and compelling. When integrated into all aspects of a business, a strong
EVP will help retain top performers and attract the best external talent.

Here are some tips for creating a compelling EVP.

Understand existing perceptions

Building a company culture to present in your EVP doesn’t come solely

from business leaders but from your team members living and breathing
your business values. From your people, you will develop your ideal
company culture from your vision to reality. To develop a strong, realistic
EVP, you must first understand what perceptions your existing staff and
potential employees have about your company brand and culture. For
example:

· Why are potential employees attracted to the company?

· Why do existing employees think the company is unique?

· What do they value most about working there?

· Why do they stay?

· Why do they leave?

This information can be gathered through employee surveys, focus

groups and exit interviews, as well as through feedback from former
employees and job applicants.

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Determine key selling points

Establish a cross-functional team to review the research and determine

the aspects of your business that people value the most. Building out your
employer brand and defining this clearly within your EVP will give a
clear sense of what your business embodies and how this might fit into a
potential employee’s values. Use this information to draft an EVP,
ensuring the following questions are considered.

· Does it align with your strategic objectives?

· Does it differentiate your company?

· Does it paint a realistic picture of what it’s like to work for your
company?

· Is it inspirational?

· Is it simple but broad enough to appeal to different groups?

Test your EVP with existing employees and a sample group from the
external market to see if it adequately articulates why an individual would
want to work for your company.

Communicate the message

Once your EVP has been defined, find creative and relevant ways to
communicate it to the people you are trying to attract. Start by conveying
it through all hiring channels such as company websites, advertising, and
the interview process so that prospective talent can determine if they
would make a good fit for your business. Consistently communicating a
compelling EVP through branding, public relations, and marketing will
also help the passive labour market form a positive perception of the
value of working for your company.

Ensure alignment

Existing employees are your most powerful source of advertising and

play a key role in helping to attract talent. To cultivate brand
ambassadors, your employees must see consistency in the image you sell
externally and in the day-to-day reality of working for your company.
Incorporate the EVP into the company’s induction plans, reward and
recognition schemes, internal communications, policies, and business
plans, so that it is reflected in the way your company conducts its daily

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operations. Review your EVP annually to ensure that it continues to
reflect the changing employee experience.

With an effective EVP, you will have candidates fighting to work for
you. The hardest part will be choosing the best fit; read our article on
getting talent from interviews here.

For more advice on building an EVP that sticks and persuading star
candidates to join your business, download our comprehensive guide
here.

WPM7202 – EMPLOYEE VALUE PROPOSITION (*NOTE 2)

What Is Your Employee Value Proposition (EVP)?

Strong employee value propositions (EVPs) set you apart from your
competition and can help you attract quality candidates and retain
impressive employees. Creating an effective EVP involves learning what
your current employees enjoy about your company and what candidates
want in their ideal workplace.

Below, learn what an employee value proposition is how it can help you
recruit top talent, what qualities make a good EVP and several employee
value proposition examples to help you define your own.

What is an EVP?

An employee value proposition is the set of benefits you offer employees

in return for the skills, experience and qualities they bring to the position.
In simple terms, what’s in it for them?

Your EVP typically includes the benefits, financial rewards, career

development opportunities and additional perks employees receive. It
also mentions your company’s values and vision. The goal of an EVP is
to make employees excited and proud to work for your company, and is
an excellent way to build your employer brand.

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Many job seekers search for companies that share similar values. Seeing
an employee value proposition that aligns with an employee’s goals and
passions may convince them to choose your company over another. In
fact, according to an Indeed survey, 21% of job seekers decided to
accept the offer for their current job because their interests and
values were reflected in the company’s mission.*

Not only that, but having a compelling EVP can attract passive
candidates (i.e., those who are not actively looking for a job but are open
to the right opportunity), which makes up a large percentage of the global
workforce.

Overall, EVPs are to employees what unique selling propositions (USPs)

are to customers and clients.

What makes a good employee value proposition?

A strong EVP stands out from your competitors and is relevant to your
employees’ wants and needs. It should represent your company’s values
and make your employees feel proud, motivated and encouraged to do
their best work each day.

An effective EVP typically includes more than just a paycheck. Here are
a few key elements commonly included in compelling EVPs:

• Financial rewards like salary, stock options and bonuses.

• Employment benefits like paid time off, health insurance,
retirement funds, parental leave or company-sponsored holidays.
• Career development opportunities like leadership training,
technical training, mentorship programs, promotions, travel
opportunities, tuition reimbursement or paid educational courses.
• Additional monetary and non-monetary perks and incentives like
gym memberships, free coffee and snacks, flexible work hours,
work from home opportunities or team building workshops. Check
out 32 other employee incentives to consider offering here.
• A positive work environment that provides autonomy, recognition
and a good work/life balance.

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 • Statements about company culture, goals and values like
communication, collaboration and positive relationships between
team members and supervisors.

Examples of EVPs

Here are some employee value proposition examples:

• “At Best Tech Unlimited, we’re dedicated to the success of our

employees and helping them achieve their goals. Our leadership
team is constantly encouraging employees to advance in their
career by offering leadership training, team building workshops
and free college courses to employees who stay on our team for at
least a year. We’re committed to enhancing the lives of our team
and helping them grow as people and as professionals.”
• “Marking Solutions is looking for team members passionate about
helping others. Our goal is to work side-by-side with our clients to
promote their small businesses. We do this by thinking outside the
box to craft creative content and marketing campaigns that drive
consumers to these companies. To help our employees provide a
one of a kind client-employee relationship, we offer benefits like
paid travel to clients’ offices, customer service training retreats and
career advancement opportunities.”
• “Our team at Elevate values the importance of collaboration and
engagement. That’s why we’re dedicated to making the office your
favorite place to be. We want work to feel fun, instead of like a
chore. To support this, we offer perks like a fully stocked kitchen,
flexible hours, potential bonus opportunities, employee retreats and
unlimited vacation. Come have fun with us and love where you
work.”

How to define your own employee value proposition

Your EVP must appeal to potential job candidates and encourage

employee loyalty. Here are five steps to help you create a strong EVP you
can include in your talent acquisition process:

1. Assess what your business currently offers

What are your company’s key selling points? Note the current benefits,
perks, compensation, work environment and other opportunities your

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business offers employees.

Over time, your values may change so it’s important to review your
company’s EVP to decide if it continues to accurately represent your
business as your company grows.

2. Make a list of qualities your ideal employees have

Sit down with your leadership team and list the qualities of top candidates
you’d like to recruit, also known as your ideal candidate persona.
Mention any skills, traits and characteristics of these ideal employees.
Possible traits could include:

• Dependable
• Motivated
• Experienced
• Passionate
• Self-disciplined

Knowing the qualities you want in candidates allows you to center your
employee value proposition around them. For example, if you’re looking
for motivated employees, offer training and career development
opportunities. This attracts the most motivated candidates looking for
opportunities to grow and advance in their careers.

3. Conduct surveys with current employees to learn their wants and

needs

It’s important to attract new candidates while also retaining current talent
to reduce employee turnover. Craft a list of questions asking your
employees what they like about your company and what they wish to
improve. Use this list to understand which opportunities your current
employees will benefit from the most.

Employees will feel more encouraged to stay at a company with an EVP

that revolves around their needs. Seeing how passionate employees are
about working at your company creates a positive atmosphere that

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candidates will want to join. Possible questions to include in your
employee survey include:

• What do you enjoy the most about working here?

• What are some of your favorite benefits or perks we currently
provide?
• Which opportunities do you wish we provided?
• Are the career paths at your company clear?
• Do you feel like you’re doing meaningful work?
• What support would you like our company to provide that
contributes to your career development?
• What do you think makes this company unique?

Conducting exit interviews is another great way to gather useful feedback

you can use to build a strong EVP.

4. Cater your EVPs toward each candidate

To ensure you’re attracting your ideal candidates, target your messaging

toward the specific audience you want to hire. For instance, if you want
to fill your entry-level positions with candidates who have a desire to
learn and grow, your employee value proposition might highlight any
growth, career development or tuition reimbursement opportunities you
offer.

Catering your EVP toward each candidate attracts quality employees.

Even though you’re tweaking your messaging to speak directly to a
certain audience, make sure each EVP still represents the values and
career goals of your company as a whole.

5. Communicate your EVP

After you’ve defined your EVP, it’s time to share it with the candidates
you want to attract. Consider including it in your job descriptions, on
your company website, during the interview process, in job offer letters,
on your social media account and in other parts of the hiring process.

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Remember, the goal of an EVP is to help you attract, hire and retain
candidates that are the right fit for your business, so it’s important that
they’re aware of what makes your company unique.

FAQs about employee value propositions

How do you evaluate the effectiveness of your EVP?

A few key performance indicators (KPIs) you can use to measure the
effectiveness of your EVP include: employee satisfaction rate, traffic to
your company career page, time to hire, applicant-to-interview ratios,
cost-per-hire, turnover rate and online company ratings and reviews.

What is the difference between EVP and employer brand?

Your company’s EVP is why people want to work for you instead of
anyone else, including the specific value you provide to current and
future employees. Employer brand is closely related, but also involves the
“what” and the “how” behind your business, including a company’s
external reputation and image. Overall, an EVP is a building block of
employer brand.

What question does the employment value proposition answer?

An EVP helps candidates answer the following questions about your

company:

• Why should I work for your company instead of a different

company?
• What’s in it for me?
• What makes your company a great place to work?
• What can you offer me that other companies won’t?
• Why should I apply for this job?

WPM7202 – EMPLOYEE VALUE PROPOSITION (*NOTE 3)

What is Employee Value Proposition (EVP), and why should your

organization invest in it? Let’s find out!

8
Companies no longer enjoy an upper hand in the recruitment and
retention of talent. Today, employees have many options and are highly
discerning while choosing jobs.

Check out Top Leadership Skills and learn how to lead your employees
the way they need.

So, how can you attract and retain top talent in this competitive
market?

By offering a compelling Employee Value Proposition (also called

employer value proposition) to current employees as well as potential
candidates.

But wait a minute. What developing a great Employee Value Proposition

(or EVP) actually means and why is it so important?

In this article, we will go through the components of a great Employee

Value Proposition (EVP). We will also walk you through the process of
creating a strong Employee Value Proposition for your company.

Are you ready? Let’s dive in!

What Is Employee Value Proposition?

Employee Value Proposition (EVP) is usually defined as a set of

monetary and non-monetary benefits provided by an organization to
its employees in return for the skills, capabilities, and experience they
bring and the contributions they make to the organization.

However, this definition is rather outdated.

The modern definition of Employee Value Proposition

Employee Value Proposition is an ecosystem of support, recognition,

and values that an employer provides to employees to achieve their
highest potential at work.

The key difference here is that EVP should not be looked at as a two-way
transaction but as a comprehensive set of employer offerings that boost
employee engagement and bring out the best in employees.

An effective EVP helps organizations and recruitment professionals in

establishing a strong employer brand.

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Since the emergence of the pandemic, many organizations started re-
assessing their core company values. Remote and hybrid work have
reshaped the way people work, and people are looking for different
benefits from their employers.

So let’s take a look into why defining and understanding a company’s

EVP is so crucial.

Why Is Employee Value Proposition Important?

Employer branding is critical for an organization to attract top talent.

Done right; an EVP offers a compelling answer to the question – Why
should a highly talented person choose to work with us?

Designing an EVP that is unique to your organization will considerably

improve your talent acquisition and retention, giving you an employer
brand that has an edge over your competitors.

It makes talent management easy, even if you are trying to attract passive
candidates.

1. Attracting Top Talent

There’s no denying that recruitment marketing has changed drastically.

Prospective employees are becoming more and more discerning in their
job search.

For example, the explosion of remote work options means that candidates
can find higher-paying jobs that also give them better employee
experience in terms of flexibility and work-life balance.

This has made attracting top talent a lot harder for HR professionals.

An EVP acts as a key driver of talent management and talent acquisition.

Therefore, consistent and efficient communication of an employee
value proposition that enhances employer branding has become
extremely important.

2. Retaining Top Talent

In this tough market, it is important to attract the right talent. But

retaining high-performing employees is equally important, if not more.

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Losing talented employees means losing productive people who are
hard to replace. It’s time-consuming and expensive. This is why Fortune
500 companies make extensive efforts to retain their top talent.

3. Optimizing Recruiting Expenses

Firstly, if your company’s employee value proposition is compelling, you

will get more applications from talented candidates.

Consequently, your human resources team will need to spend less on

recruiting agencies, job ads, social recruitment strategies, and other talent
acquisition expenses.

Essentially, your cost per hire will fall.

Secondly, because an EVP also helps retain top talent, it saves on

additional recruitment and training costs. This translates to a sizeable
amount as many company resources are poured into educating and
training fresh candidates.

4. Building a great corporate culture

When employees know what their company stands for, they are more
motivated and engaged at work. This is particularly true when employees
values match their company’s values.

Consequently, when organizations care about this match, they are more
likely to build a great corporate culture their employees will aprreciate.

5. Improving employee experience

An organization’s EVP also impacts the overall employee experience in

the workplace. Employee-driven companies define their value
propositions based on their workforce.

This ability to focus on what people truly care about is what brings the
biggest competitive advantage to the successful organizations.

What Are the Components of an Employee Value Proposition?

Defining a unique employee value proposition is all about assessing the

core strengths of your organization.

This process involves identifying the different elements that come

together to make your organization an awesome place to work.

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Here are five main components that your EVP should include:

1. Financial Rewards

This component of EVP addresses an employee’s expectation from the

overall evaluation and compensation system – the total rewards. It covers
all the financial offerings like salary, bonuses, and stock options.

On the face of it, financial compensation may seem like the key motivator
for the workforce. But, it is only a piece of the puzzle when it comes to
an employee value proposition.

Let’s look at the non-financial benefits.

2. Employment Benefits

This component of EVP is associated with a range of additional benefits

associated with the job. These include things like:

• Health insurance
• Retirement benefits
• Paid leaves
• Gym memberships
• Company-sponsored holidays

A benefits package works best when it’s customized to the industry, the
culture, the organization, and the employees. So, feel free to get creative
with it.

3. Career Development

Employees want to see the growth potential their job has to offer and how
the organization can contribute to their career development. This
component of EVP includes:

• Technical training
• Leadership training
• Sponsored courses (things like a project management certification
or even an MBA)
• Mentoring and career guidance
• Promotion opportunities
• Opportunities to work in other cities or countries
• Opportunities to change domains
• Opportunities to work in specific coveted projects

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For an organization that is unable to offer salaries at par with its
competitors, offering a clear career development and growth plan can
be the difference between hiring and losing quality talent.

4. Work Environment

This component of EVP is associated with factors that constitute a

positive working environment. These include things like:

• Flexible working hours

• Work-life balance
• Recognition
• Team building
• Communication systems
• Workspace design
• Employee wellbeing

Organizations must recognize the importance of creating a work

environment where employees thrive and do meaningful work.

This adds to positive employee experience and engagement. They must

consciously make efforts towards building and marketing such an
ambiance.

5. Company Culture

Management guru Peter Drucker once famously said, “Culture eats

strategy for breakfast.”

Several industry leaders across the world concur with this belief.

This component of the employer value proposition addresses the factors

that constitute a great company culture.

Read on: Company Values: Definition, Importance and Examples

These include things like:

• Trust and collaboration

• Positive relationships between team members across hierarchies
• Team communication and support
• Alignment of employees with company goals

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Key Employee Value Proposition Stats You Can’t Ignore

• Organizations can reduce the compensation premium by 50% and

reach 50% deeper into the labor market when candidates view
their employee value proposition (EVP) as attractive (Gartner)
• Businesses that effectively deliver on their EVP can decrease
annual employee turnover by just under 70% and increase new
hire commitment by nearly 30% (Gartner)
• A well-executed employee value proposition can Increase the
likelihood of employees acting as sponsors from an average of
24% to 47% (Link Humans)
• 57% of recruiters say their top challenge is differentiating their
company from the competition (SmartDreamers)
• 75% of Americans would not take a job with a company that had
a bad reputation, even if they were unemployed (TalentLyft)
• 43% of employees cite limited career paths as a primary reason for
leaving a job (TalentLyft)
• Happiness led to a 12% spike in productivity, while unhappy
workers proved 10% less productive (Fast Company)
• 64% of employees feel they do not have a strong work culture
(Sapling)
• While 60% of employers have increased employee listening efforts,
few are using formal listening approaches.
Indeed, just 31% conduct employee surveys and 13% conduct
focus groups (Willis Towers Watson)
• A survey run in the UK during the pandemic showed that 73% of
the respondents believed they were more efficient when working
from home (Statistica)
• 22% of remote employees say that they struggle to unplug after
work (Buffer)
• 85% of employees say they’re most motivated when management
offers regular updates on company news (Trade Press Services)
• Only 21% of IC experts believe that employees have a good
understanding of why senior leaders make the decisions they do
(h&h)
• Employees who say their manager is not good at
communicating are 23% more likely to experience mental health
declines (Harvard Business Review)
• Only 13% of employees strongly agree that their leaders are
effectively communicating with the organization (Gallup)
• 45% of adults are reporting that anxiety and stress related to
COVID-19 has had a negative impact on their mental health (The
National Law Review)

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 • 74% of employees have the feeling they are missing out on
company news (Haiilo)
• Only 23% of executives say that their companies are excellent at
aligning employees’ goals with corporate purposes (Deloitte)
• Employee satisfaction at Google rose by 37% as a result of
employee support initiatives (Fast Company)

6 Steps to Creating a Great Employee Value Proposition

Now that we have identified the main components of an EVP, it makes

the complex task of building one a lot easier.

Here are six steps to building a great EVP for your organization:

1. Assess what you currently offer

2. Interview your existing and past employees
3. Define the key components of your EVP
4. Write your employee value proposition
5. Promote your EVP through the right channels
6. Review the results

1. Assess what you currently offer

EVP development should start with the basics. You must assess what
your company currently is and what it isn’t. You should be clear about
your branding.

Make a checklist of all the components of EVP in the above section. Go

through each item in the EVP checklist and determine the extent to which
your company currently offers each.

It’s important to be completely objective while carrying out this activity.

That’s why it’s useful to take opinions from your employees about how
well these are being met.

2. Interview your existing and past employees

Knowing what your company can and cannot offer is crucial for building
a strong EVP.

Use employee surveys to collect feedback from focus groups that include
current employees and any new hire.

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Include past employees as well in employee surveys, and understand
what the organization could have done to help them stay. Lastly, follow
this by researching your prospective employees.

In the employee surveys, ask your current employees questions like:

• Why do you like working here?

• What motivates you at work to engage more?
• What improvements would you like to see?
• What’s the single most important need that you have related to our
company?
• What kind of support do you expect from the company to help you
achieve your professional development goals?

Use the responses given by different focus groups to find out what
motivates your top performers and incorporate this feedback to build a
better job offer for your potential employees.

3. Define the key components of your EVP

Now it’s time to evaluate your findings and arrive at your company’s
new employee value proposition. This is how you will attract and retain
top talent.

Use the research from the previous steps to answer questions like:

• What salary range and employment benefits will attract my target

candidate persona?
• What career growth opportunities is my target candidate looking
for?
• What kind of company culture will help my target audience
succeed at work?
• What constitutes an ideal work environment for my target
candidate persona?

Your EVP should also be segmented for different roles and levels. For
example:

• The EVP for recent graduates to fill an entry-level position will

highlight things like career growth, fun office environment,
positive employee experience, and employee perks.
• The EVP for professionals who are not recent graduates will
highlight things like career stability, child-care support, and work-
life balance.

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Once you have determined what you will offer, translate it into
statements that candidates can quickly understand and relate to. Now
your strong employee value proposition is ready!

4. Write your employee value proposition

Once you’ve identified how your company differs from the competition
and what employee experience you can deliver, the next step is to write a
strong employee value proposition statement.

Make sure that your EVP statement is clear, unique and inspirational.
That’s the only way it will help you attract and retain top talent.

Also, make sure that your EVP is aligned with your employees and the
company’s expectations.

5. Promote your EVP through the right channels

So, you have a winning EVP in place, but even the best EVP is pointless
unless it is well communicated.

So what’s next?

Don’t just talk about your EVP on the careers page on your website.
Promote it!

Leverage the different internal and external communication channels

you’re currently using in your organization to get the word out.

Internally, you can promote your EVP through company blogs,

newsletters, email, town halls, and internal communication tools like
Haiilo.

Indeed, the way you communicate with your employees has a direct
impact on the employee experience you deliver and, by extension, your
employee value proposition.

Read on: Top 5 Communication Skills and How to Improve Them

Essentially, Haiilo allows you to:

• Create personalized news feeds based on your employees’ job

functions, preferences, interests, locations and the languages they

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 speak so you share with your employees the news and information
that are relevant to them
• Embrace real-time communications and provide an easy mobile-
access to information
• Keep all your employees connected and informed, no matter
where they are
• Easily segment your internal audiences for better content
localization and personalization
• Create pages and communities dedicated to specific company
topics
• Work as a knowledge base for all employees
• Enable your employees to collaborate more efficiently
• Connect various communication, collaboration and document
sharing tools
• Provide data on how your employees are assessing the vibe in
the workplace and what are their main concerns so you can
take your internal communication to the next level
• Enable employees to become brand ambassadors by sharing
important company news and educational content with their
personal networks.

Externally, you can promote your EVP across social media, such as
LinkedIn pages, website careers page, job postings, recruiting videos and
employee referral programs.

Get your brand ambassadors to promote the employer brand using their
social media platforms.

There are many communication tools available to help you promote your
EVP across various touchpoints of the candidate journey.

The key is to ensure it is integrated into your corporate communications

plan and employer branding strategy.

6. Review the results

The first step in the review process is to measure how key talent is
responding to your new EVP.

Check metrics such as:

• Higher engagements on social media on job-related posts

• Increase in applications
• Increase in responses from passive candidates

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 • Falling attrition

But that’s not all!

Keep reviewing your EVP from time to time – at least once a year.
People’s expectations change over time, and even if your current EVP is
extraordinary, fresh takes are always important for it to keep working.

Therefore, keep taking employee interviews in focus groups to

understand what people are looking for. This will ensure your EVP is still
strong to attract and retain the right talent.

Example: Employee Value Proposition at Haiilo

At Haiilo, we believe that successful employees make a successful

company. We have built our culture on a set of core beliefs and values
that keep the employee at the center.

Walk through the corridors of Haiilo to enter a world of collaboration,

accountability, positive energy, and value creation.

We define leadership to be a fine balance of support, encouragement,

ownership, and knowledge sharing.

Instead of charting out traditional career paths, we encourage our

employees to create and define their growth opportunities not just as
individuals, but also as teams.

Employees are encouraged to take the initiative, be it moving between

functional roles or even creating a new one that didn’t exist.

Being big believers in learning by doing, we strongly promote the idea of

self-development and employee empowerment.

Despite having offices globally, we work as a singular team towards a

common goal. The key highlights that define our team is:

• We value diversity and derive strength from the 20+ nationalities

representing us
• We share our success by offering team members to be company
options holders
• We have remained efficient and continue to value our resources
as we grow
• We embrace austerity as we value time and capital very highly

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Conclusion

In the race to attract top talent, a strong EVP will set you apart from the
rest. Today, employees seek a great place to work and a great experience
in the workplace. Organizations that realize this and factor this into their
recruitment strategy are likely to be attractive employers for top talent.

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